Koufidakis on the fragile recovery and NFA

Phil Koufidakis, president, Baker Brothers Super Floors in Phoenix, Ariz., was elected president of the National Floorcovering Alliance (NFA) at the group’s fall convention last year. The NFA, which includes 42 of the nation’s largest retailers, has evolved over the years from a casual group that gathered to share information and fellowship into a cohesive group of buyers who are creating their own programs. At the group’s recent convention held in April, it was obvious that Koufidakis intends to continue down that road, as well as increase the group’s emphasis on marketing.

Koufidakis has a long history in the flooring business, having served on the wholesale side before moving over to retail, taking on the top post at Baker Brothers, arguably one of the region’s oldest and most well established retailers. FCW editor-at-large Kimberly Gavin caught up with Koufidakis on the state of his business as well as his goals for the NFA.

What have the first four months of 2013 been like for Baker Bros?

Koufidakis: The first three months were great. Then things slowed down a bit when we hit spring break and Easter, so I’m expecting it to pick up again here soon.

Based on what you are seeing now, what are you anticipating for the first six months?

Koufidakis: I would anticipate a similar “run rate” to what we have had over the past six months or so, which has been double-digit growth.

Do you feel as if we have come out, or are coming out, of the recession?

Koufidakis: We are creeping out of it. There has certainly been some recovery in the marketplace over the last nine months or so, but I would be lying if I said I was completely convinced that the recovery was on fully solid ground.

There are too many economic indicators, such as unemployment, debt, etc., that are not exactly positive. Plus, you have other issues, i.e. North Korea and some of the domestic terror issues that could affect things. Let’s still put it in the fragile recovery state for now.

You share information with a wide variety of dealers through NFA. Is your market drastically different than general market conditions?

Koufidakis: I am not sure it is dramatically different, other than we are significantly more tied as a region to housing. Based on that, we felt the recession sooner and deeper than most anyone else with perhaps Las Vegas being the one exception. With that said, I believe this will be a first in, first out scenario, so when things get better here, the rest of the country will be a year or so behind — we were that far ahead on the downturn.

What promotions have worked well for you over the last year and will you repeat them this year?

Koufidakis: We are always trying something new if possible. We cannot go to the same well too often. At Baker Brothers, we are spending extra time this year on courting past customers. We are fortunate to have an extensive list and multi generations of families that have purchased from our company over 68 years.

What qualities do you bring to the NFA as president?

Koufidakis: I think one of the things that I bring to the table for the group is that I have spent actually more time on the wholesale side of the business than even the retail side of the business, both at fairly high levels. With that, I have a unique understanding of both sides of our industry.

What are your goals for the group in the time you will serve?

Koufidakis: Bring the members closer together and harness the incredible brainpower that sits in the room. Also, I want to make sure that we continue to build closer relationships and leverage opportunities with our vendor partners.

Leading the group takes time and energy and I know you are doing it in part to contribute. But what do you expect to get out of the experience for your own business?

Koufidakis: Nothing. This is purely a give back for all that I have received. There are so many amazing people in the room that have shared a wealth of information on a variety of subjects with me. I am eternally grateful. So you could say that is what I get for my own business, but that comes as part of the group — no presidency required.

If you look at the flooring industry today, what do you feel good about?

Koufidakis: I feel good about the strides we have made overall in our quality control and our professionalism. More and more companies on every level are looking at training as a key piece of the puzzle. Ultimately, the consumer experience is way better than before. We used to be below used car dealers — now I think the industry is above them.

What bothers you?

Koufidakis: The low barrier to entry and the lack of distribution control by the manufacturers. In addition to creating margin pressure at every level, mass distribution makes the move to a more professional industry more difficult. There are too many mouths to feed.